From Sensing to Reconfiguring: The Role of RPA in Developing Dynamic Capabilities in Banking

This study explores the relation between dynamic capabilities and process automation in the banking sector in Portugal, specifically RPA, within the Portuguese banking ecosystem. The term dynamic capabilities can be defined as the capacity of organisations to sense opportunities, seize them, and reconfiguring resources as needed in a context of rapid environmental changes (Teece, Pisano, & Shuen, 1997), these capabilities are critical for banks aiming to remain competitive in an increasingly fast-paced market. As for the term process automation, it has emerged as a key strategy for improving efficiency, with RPA enabling banks to streamline repetitive tasks. It is a technological solution that allows employees to focus on complex tasks while automating routine ones, increasing overall productivity and supporting workforce transformation, not only reducing operating costs, but also helping institutions to respond more effectively to evolving customer needs and industry trends (Leopold, Van der Aa, & Reijers, 2018). This research investigates how dynamic capabilities influence the adoption and implementation of RPA in the Portuguese banking sector. The aim is to explore how banks can leverage RPA to enhance adaptability and resilience, ultimately enabling them to address challenges and seize new opportunities in a dynamic ecosystem. The findings suggest that there is an association between the dynamic capabilities and RPA, with a stronger link observed in the reconfiguration pillar and a weaker one in the sensing pillar. It is also possible to conclude that decision-makers, particularly IT directors, are aware of the potential of RPA as a means of developing dynamic capabilities to adapt to constantly changing environments.